TRAINING OF LEADERSHIP

Training of Leadership

The Importance of Behavioral Development of Skills in Training of Leadership

Introduction

Leadership development is an integral component in organizational learning and development. Once considered a luxury, leadership development is valued as a strategic necessity for leveraging knowledge and talent in pursuit of organizational goals and objectives. Effective leadership development can maximize human capital, improve employee retention rates, and attract quality leaders from outside the organization. Assessing the outcome of leadership training provides the necessary feedback to refine development efforts to strengthen organizational effectiveness, and position leadership development as a strategic partner in organizational excellence. Behavioral development programs are growing in prevalence.

In 2002, 83% of top-performing firms, as measured by shareholder return, implemented a formal approach to leadership development. Despite the attention to Behavioral development, Kaplan-Leiserson (2004) discovered that the leadership deficit was ubiquitous and effective leadership development will continue to be of paramount importance as companies discover inadequacies in current leaders. Executives increasingly realize that leadership capabilities can be improved through a combination of relevant work experiences and formal development opportunities, yet admit that the lack of a systematic process is a primary inhibitor to developing leaders.

Discussion

The Importance of Behavioral Development of Skills in Training of Leadership

Behavioral development efforts result in numerous organizational benefits. Research conducted by the Corporate Executive Board (2003) suggested that leadership development can result in increased performance and “improved financial branding”. Behavioral development programs are acknowledged as a source of maintaining competitive advantage through increased job satisfaction, increased productivity, increased retention, improved succession planning, maximized human capital, higher profitability, and potentially attracted quality leaders from outside the organization. According to Pernick, “A Behavioral Development of skill in training of leadership was a wise investment for compelling reason well-led organizations tends to attract quality applicants, produce satisfied employees, incur less unwanted turnover, engender loyal customers, and yield impressive financial returns”. Despite these benefits, the same study by the Corporate Executive Board reported that most organizations believe younger employees are not adequately prepared to assume leadership positions. Organizations are experiencing an influx of younger workers as unprecedented numbers of employees retire. Carnevale (2005) reported that the first cohort of baby boomers had reached age 60, prompting a rapid retirement of American workers during the next 20 years. As these individuals leave the workforce, there will be an increasing urgency for leadership Training of Behavioral development and succession planning. Financial support of Behavioral Development of skills in training of leadership is increasing. “CFOs [chief financial officers] indicated that their companies spend an average of 36% of their revenues on human capital expenses”.

According to the 2003 Annual Learning Expenditure (2005), nearly 4% of payroll in 2003 was devoted to training. Maximizing training expenditures will offer a competitive advantage to organizations willing to evaluate the return on investment of Behavioral Development of skills and make the necessary changes. Hernez-Broome and Hughes (2004) suggested that organizations are failing to reap the full benefits from the increase in Behavioral training of leadership efforts and ...